1991 (1) TMI 385 - SC - VAT and Sales Tax

Validity of the imposition of sales tax on the sale of exercise-books, levied by the U.P. Sales Tax (Amendment and Validation) Act (No. 23 of 1976) challenged Held that - Appeal dismissed. No merit in the appellants contention. There are a number of decisions, some of them have been referred to in the impugned judgment upholding the validity of levy of tax with retrospective effect.

Summary

The Supreme Court dismissed the appeals challenging the imposition of sales tax on exercise-books by the U.P. Sales Tax (Amendment and Validation) Act (No. 23 of 1976). The Act imposed a 5% tax on exercise-books with retrospective effect from December 1, 1973. The court found no merit in the appellants' contention that the tax imposition was unreasonable and discriminatory. The State Government issued administrative instructions to adjust the tax on paper against the sales tax liability on exercise-books made from locally purchased paper. The court did not express an opinion on this issue, stating that it should be raised before the sales tax authorities for investigation on a case-by-case basis. The appeals were dismissed with no order as to costs.